Five Functions of Business Organization
A business has to perform a number of functions in order to achieve its objectives. One of the major functions of business produces goods from raw materials. Similarly transporting goods from place of production to the market is also another function of the business.
The major functions of business are discussed Below:
1. Organizing Function:
One of the main functions of a business is organizing function. Man, machine, materials, and money are essential factors for any business. organizing function collects and coordinates all the necessary factors of the business. Proper organizing function is helpful in the smooth running of the business and helps to achieve its objectives.
2 .Financing Function:
Finance is the life-blood and back bone of any business. The availability of factors of production depends upon the availability of finance. So every business needs finance for its success. Therefore, under this function of business required capital is estimated, accumulated and properly utilized. A proper capital structure according to the size and nature of the business is essential for the success of the business.
3 .Production Function:
The production function is another important function of the business. Converting raw materials into finished products to satisfy human wants by creating utility is known as production. Under this function, raw materials and semi-finished products are processed and assembled to create utility. Hence the next important function of business is to create utility for the satisfaction of the consumers by the production of goods.
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4.Marketing Function :
The function of business is not complete with the production of goods and services only. The main goal of production is to satisfy human wants through the consumption of goods and services. Therefore, marketing function helps to transfer goods and services from the producer to the ultimate consumer. Marketing functions can be divided into concentrating and dispersing which include buying, selling, transportation, storage, risk taking, market information, etc.
5 .Employment Function:
The next important function of business is to provide employment opportunities in the country. Every business requires a large number of manpower to perform their activities. So they are helpful in solving employment problem of the country by providing maximum employment opportunities.
Business sectors are possibly the largest employment generating sector in the world.
The success of any business depends upon the satisfaction of the consumers. Therefore, giving the priority of consumer satisfaction the above functions of business must be conducted efficiently and effectively in order to run a business successfully.